Now is a good time to invest in real estate. The property market is recovering while the demand for rentals is quite high due to the stricter requirements for home purchase financing. It is not easy to secure a mortgage for buying an investment property, but with some practical advice you will certainly score a great deal. Get the most important tips now.
Prepare a big down payment.
Since mortgage insurance is not available to property investors, lenders require down payment of at least 20% of the price of the property that you plan to purchase. This means that you need to have considerable savings or look harder for a more affordable property that will generate sufficient returns with minimal investment.
In general, with a down payment larger than 20%, you can increase your chances of getting approved for a loan and of securing lower interest rate as well. Experts recommend that you try to pay at least 25% of…